Arcos Dorados' Q4 2024: Contradictions Unveiled in Digital Growth, EOTF Rollout, and Delivery Strategy

These are the key contradictions discussed in Arcos Dorados' latest 2024Q4 earnings call, specifically including: Digital Sales Growth, EOTF Rollout in Mexico, Master Franchise Agreement (MFA) Terms, and Delivery Strategy:



Revenue and Earnings Growth:
- Arcos Dorados Holdings Inc. reported total revenue of $433.6 million for Q4 2024, up 4.6% year-on-year.
- The growth was driven by strong performance in key markets, particularly Brazil and key cash-generating markets like Chile.

Same-Store Sales Increase:
- The company's same-store sales increased by 8.1% year-on-year in Q4 2024.
- This was attributed to a combination of strong sales of McDonald's new premium offerings, effective pricing strategy, and strong performance in certain markets.

Profitability and Margin Expansion:
- Arcos Dorados achieved a System Operating Income margin of 14.9%, improving by 0.6% year-on-year in Q4 2024.
- Expansion was primarily due to strong operating performance and effective cost management initiatives.

Expansion into New Markets:
- The company opened a record 249 net new restaurants during Q4 2024, with 144 in Brazil and 105 in non-Brazil markets.
- This strategic expansion was driven by the growth potential in new markets and the successful integration of McDelivery across various regions.

Digital Transformation and E-commerce Growth:
- Arcos Dorados' digital sales grew by 11% year-on-year in Q4 2024, with McDelivery contributing to over 52% of total System Sales.
- The digital growth was supported by the continuous expansion of digital capabilities and increased customer preference for online ordering and delivery services.